Qld joins court case against mining tax

The Queensland Government has joined a High Court challenge against the mining tax being mounted by a mining company.

Transcript

EMMA ALBERICI, PRESENTER: Conservative governments in the mining states are to lend legal support to a High Court challenge to the mining tax being mounted by Fortescue Metals Group.

Federal Opposition Leader Tony Abbott's supporting the state's move, but the Federal Treasurer Wayne Swan says it's a futile waste of money for a state such as Queensland that can't afford it.

Political correspondent Tom Iggulden has more from Canberra.

TOM IGGULDEN, REPORTER: The Queensland Government's deep budget cuts have brought public service unions out on the streets. But today it found money to spend on opposing the mining tax.

JARROD BLEIJIE, QLD ATTORNEY-GENERAL: Yes, the state is in a dire financial situation, but we can't just sit back and let the Federal Government continue to tax the people of Queensland.

TOM IGGULDEN: Queensland will intervene at a cost of up to $300,000 to support the High Court challenge to the mining tax being brought by Western Australian mining magnate Andrew Forrest. The move mirrors one in Mr Forrest's home state.

COLIN BARNETT, WA PREMIER: I'm sure state solicitor from WA and Queensland, they will work together to make sure that they protect the constitutional rights of the states to own the natural resource.

TOM IGGULDEN: But the Federal Treasurer had a different view of what's behind the Queensland Premier's decision to back the High Court challenge.

WAYNE SWAN, FEDERAL TREASURER: What Mr Newman wants to do is to rob the punters and pay Mr Palmer.

TOM IGGULDEN: That's billionaire Queensland mining magnate Clive Palmer, who like Mr Forrest has been a vocal critic of the mining tax.

WAYNE SWAN: The LNP in Queensland is prepared to fund a futile challenge because they owe people like Mr Palmer so much. After all, he owns the LNP in Queensland.

TOM IGGULDEN: But the WA Premier says it'll be up to the High Court justices to determine if the challenge is futile.

COLIN BARNETT: Whether it will be ruled out on legal grounds by the High Court, I could not predict that. I don't think anyone could.

WAYNE SWAN: Well our advice from our legal advisors is that we will succeed in this case. We are very confident about that.

TOM IGGULDEN: Tony Abbott's pledged to repeal the tax if he wins government, but says that shouldn't stop attempts to get the High Court from doing it first.

TONY ABBOTT, OPPOSITION LEADER: The mining tax particularly targets the resource-rich states, and if the states in question wish to challenge it in court, that's a perfectly reasonable thing for them to do.

TOM IGGULDEN: And Mr Abbott's continuing to be challenged about reports he failed to mention his asylum seeker policy in a recent meeting with Indonesian president Susilo Bambang Yudhoyono. The policy would turn asylum boats back to Indonesian waters.

TONY ABBOTT: We are building, from opposition, a strong and constructive relationship with the Indonesian government. And the best way thing we can do ensure that that happens is not to conduct megaphone diplomacy, not to blab in public about conversations that should rightly be private.

TOM IGGULDEN: But tonight Indonesia's presidential spokesman's confirmed the issue wasn't raised in the meeting. The Prime Minister's accused Mr Abbott of cowardice for not confronting Dr Yudhoyono with his plans.

JULIE BISHOP, SHADOW FOREIGN MINISTER: And the Coalition does not intend to be lectured by a prime minister who has damaged our relationship with Indonesia because of her inept and incompetent bungling of the live cattle export issue.

TOM IGGULDEN: It's rare to see the Opposition on the defensive when it comes to the asylum seeker issue. Expect the Government to keep probing this chink in Tony Abbott's armour.

Tom Iggulden, Lateline.

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